Ann: Preliminary 1H19 Results, page-18

Overall its a positive result. Company continues to grow revenues, while innovating on their core product and launching into a new segment.

- Elite wearable continues its steady march forward globally

- Video revenue growth ramping up - keep in mind almost all revenue from video comes from the US, and management made it clear that the strategy around video was to push out to International. Video has a global market to attack now, so results here over next 3 years could be very good.

- Prosumer - hiccup on result vs projection. Mistake by management to predict ambitious numbers for a startup, but sales growth not matched to plan and therefore expenses, so change in strategy warranted. They have obviously said lets go for yield and volume first by controlling distribution, and now that is not playing out perhaps we will now see this shift to a different distribution model. Doesn't mean there is no product/market fit, just needs a strategic shift.

Outside of prosumer only other flag was ratio of subscriptions to capital purchases shifted more to capital. Could be seasonal and European influence. This might also be padding the revenue numbers a touch. 

Still anyone expecting anything monumental from CAT in the short term will be dissapointed. They are on a steady 20 mile march that will take years to play out.